Blockchain Application Within Logistic Issues
Blockchain technology application areas are not limited to IT, cybersecurity, networking, and cryptography. Blockchain assures data safety, own application simplicity, verification reliability and other advantages that may improve almost every business process. All these properties allow new cryptocurrencies to appear and evolve in their own market without governmental pressure and yet with minimal regulation. Many business fields are trying to adopt new technologies. For example, dozens of international logistic companies have already paid attention to blockchain. Now they have to solve practical integration tasks and get real advantages of this technology.
But what benefits do crypto technologies have when it comes to the transportation business? As a result of blockchain implementation, the logistic area receives the impulse for development and explores new aspects of the service. Here are some of them:
- Routes transparency. As a rule, a consumer receives goods with minimum details. Although they can see the source country and manufacture labels, all other information about supply chain, including the route length, is unknown. Blockchain allows to track it.
- Preferences specification. As long as a consumer can process information on the movement and history of products, they can pick their favourite goods taking into account a bigger number of factors.
- Audit simplification. Blockchain allows to remove unnecessary checkpoints and personnel required for data storage and arrangement, as all necessary information is already recorded in the register.
- Fraud prevention. No data about transferred cargo could be changed afterwards. Such attempt will be spotted as a mistake at the protocol level.
There are many solutions being prepared or developed at the very moment. It is known that the T-mining company is trying to implement blockchain technology in the logistic system of the Antwerp port.
Maesk and IBM companies jointly use distributed registers for the transportation and supply tracking purposes. Kouvala Innovation works in direction of the trading system for primary order shipment. Food and medicine sector companies are interested in cryptographic ecosystem as well. Some independent developers and foundations start implementing blockchain to decrease transport costs.
In order to simplify the interaction among international logistic companies, Blockchain in Transport Alliance (BiTA) was formed. The platform is supposed to be a shared open space for dialogues and discussions. This is another way to develop and implement blockchain standards into the transport industry worldwide.
There are other examples, too. Samsung announced that its unit, Samsung SDS, is planning to reduce expenses down to 80% of the current value. The project includes air cargo transport and other shipments involving blockchain.
According to Jordan Graft, Executive Vice President of Payments at TBK Bank, blockchain and smart contracts may have a positive influence on such issues of transportation companies as financing and receivables factoring. They can also impact back office efficiencies management, streamlining processes, systems integration increase. These would allow banks to decrease their rates for transportation companies and shipping.